Wendel launches its expansion in third-party private asset management and enters into exclusive negotiations with IK Partners - Seite 2

The transaction would encompass (i) an initial transaction and (ii) subsequent transactions structured to ensure alignment of interests of all stakeholders:

(i)      Initial transaction

As part of the initial transaction (expected to be finalized in the first half of 2024), Wendel would invest 383 million euros, or 12.5 times the estimated 2024 pre-tax Fee Related Earnings (“FRE”), to acquire 51% of IK Partners’ shares and rights to 20% of the carried interest generated on all future funds raised by IK Partners.

The 383 million euros would be paid by Wendel in two stages:

• 255 million euros at the time of closing,
• 128 million euros 3 years after closing, subject to certain conditions.

(ii)      Subsequent transactions

The remaining 49% of IK Partners’ capital would be acquired by Wendel in subsequent transactions, which would take place between 2029 and 2032. These subsequent acquisitions of IK Partners shares by Wendel would be payable in cash or in Wendel shares, at Wendel's discretion. The price of these additional transactions would depend on the growth of FRE over the period.

In addition, Wendel would participate in future fundraising activities up to a maximum of 10% of the capital raised, thus diversifying its investments in asset classes whose past performance has regularly exceeded 20% IRR, thereby further accelerating IK’s growth. IK Partners' team would remain autonomous in its day-to-day management and its Investment Committee would remain fully independent.

Wendel's development objectives

Wendel's ambition is to build a sizeable platform managing multiple private asset classes, alongside its historical permanent capital investment activity. The development of this platform will provide Wendel with recurring cashflows and exposure to the performance of multiple asset classes. This objective will be achieved both organically and through new targeted acquisitions.

This evolution of Wendel's business model is designed to enable the development, over time, of a value-creating platform with the potential to generate operational synergies.

The third-party asset management platform will be developed alongside the permanent capital strategy of Wendel, with the objective to generate double-digit Total Shareholder Return.

The present negotiations pertaining to the acquisition of IK announced today are part of Wendel’s 2 billion euros investment target over 24 months announced on March 16, 2023.